Is it worthwhile investing 5K in shares?
- Thread starter dwv
- Start date
Maybe the first thing you need to learn is not to take any notice of what property investors on a property chat site think about share investing.
Having been here (on SS) for many years and having also been a stock investor (starting with as little cash as you are talking about) even longer, I can assure you most of what passes as "knowledge and advice" on this subject is rubbish.
Best I don't say any more.
Interesting read everyone! I guess I have to read and learn more before going back again. Went to the library and got some books - some about "getting rich" books (to get motivated) and some specifically about shares.
Random, interesting story... can I ask what your initial strategy was in general that you keep going back to?
For those working 9-5, how do you do it? I was using commsec in the office and it was definitely distracting me from work (especially since I traded small caps). Then there's the issue of internet use in the office... they've now blocked commsec from our internet.
Thanks dw , glad you enjoyed it as I've just zapped it, probably best left unsaid .
Mine is quick , I like that b/c I'm inpatient . But, it's mostly charting which anybody will tell you is a very dicey business , but I had faith in it.
You can track your stuff and place orders after hrs you know , in someways it's better as there's no rush and time to think.
Cheers
Sorry that was not 38.4K it was 28.4K under the weather on a Friday night.
That’s also shares not capital, 215K of capital in total. I wish we bought at the prices suggested here.
We purchased high of 91 and a few more 92 both high points; this is rubbed in by all in the family regularly.
91 dividend was around $5K 92 we got a full year around $11K most recent was the start of this month $230K.
Stock selection there’s quite story behind it, but we got a lot of help from a family members father in law who had been doing similar for many years.
It was probably pig headedness but I was determined to get our money back through 1992. 1994 wasn’t much better.
And we made lot of mistakes mainly in the set up, tax wise.
Regards
I personally think in this thread so far their has been some good advice which the thread starter has taken up. He is educating himself about that investment class by going to the library and reading.
One thing the more seasoned investors here really understand well is that knowledge applied is the key to success.
It shouldn't be invest in XYZ spec mining company, it should be "educate yourself and form your own opinion"
Regards,
RH
I have a measley 5K to play with and I want to try shares again. I say again becuase I have tried it before (same amount) and GFC ate it all up. I just tried my luck but I unfortunately it wasn't there at that time.
Anyway, if this is all the money I can put into shares, is it still worthwhile doing it? I don't want to go into speccies anymore since that's where I got caught.
For most penguins, the shocks and scares are like the punt on the nags.
At least they are using the hard earned (you'd hope) to squander on 'em.
$5k is not too much; unless it's all you can put down. Then; it's "danger, Will Robinson."
The rule with gambling is don't bet more than you can afford to lose, but maybe one of the shares gurus here can advise of a solid one to go for. Sunfish?
Failing that; lots of DD of yer own comin' up.
I have a measley 5K to play with and I want to try shares again. I say again becuase I have tried it before (same amount) and GFC ate it all up. I just tried my luck but I unfortunately it wasn't there at that time.
Anyway, if this is all the money I can put into shares, is it still worthwhile doing it? I don't want to go into speccies anymore since that's where I got caught.
On the bright side you've paid for an experience, hopefully you don't have to repeat it to learn the lesson again
At least thats what I tell myself. Who knew I could pick the top of so many stocks before their fall from grace.
Are you looking to trade individual stocks or just place $5k in the market
Have you looked at something like the Commsec Share Packs?
I would ask myself
Whats the purpose of investing the $5k and what timeframe are you looking at to have it invested?
Are you going to add to your positions over time or is it a one off investment?
Reckon you can work out where you are about now....
dwv
Do yourself a favour - don't trade whilst you are working for someone else your employer is paying you money and expects you to work!
If you are going to trade, then you need to have a different strategy than intraday trading eg. EOD (end of day trading). You make your decisions after the close of the trading day and enter buy & sells online.
In my experiences good day traders have a skill/ability and that is that numbers talk to them - some watch the daily price behaviour action of shares and buy and sell accordingly or they may use charts to work out their entry and exit points.
You have the desire to trade then start your own self directed apprenticeship to learn about shares.
Quote: Motivation to succeed
Fear keeps people trapped: desire creates an urge for security, action sets you free.
Causes of fear: Lack of knowledge and understanding, lack of confidence to make a decision.
Symptoms of fear: procrastination - putting decisions off, complaceny - "she'll be right mate", insecurity, settling for second best.
Cure of fear: getting the right information, make an effort to learn and understand, gain the confidence to make the right decisions.
Causes of desire: wanting the best for yourself and your family.
Symptoms of desire: daydreaming, wishing, inaction.
Cure of desire: Setting goals and making our dreams come true.
From the book 'Wouldn't you rather be rich?' by Deirde Lampt.
Regards
Sheryn
For those working 9-5, how do you do it? I was using commsec in the office and it was definitely distracting me from work (especially since I traded small caps). Then there's the issue of internet use in the office... they've now blocked commsec from our internet
dwv
Do yourself a favour - don't trade whilst you are working for someone else your employer is paying you money and expects you to work!
If you are going to trade, then you need to have a different strategy than intraday trading eg. EOD (end of day trading). You make your decisions after the close of the trading day and enter buy & sells online.
In my experiences good day traders have a skill/ability and that is that numbers talk to them - some watch the daily price behaviour action of shares and buy and sell accordingly or they may use charts to work out their entry and exit points.
You have the desire to trade then start your own self directed apprenticeship to learn about shares.
Quote: Motivation to succeed
Fear keeps people trapped: desire creates an urge for security, action sets you free.
Causes of fear: Lack of knowledge and understanding, lack of confidence to make a decision.
Symptoms of fear: procrastination - putting decisions off, complaceny - "she'll be right mate", insecurity, settling for second best.
Cure of fear: getting the right information, make an effort to learn and understand, gain the confidence to make the right decisions.
Causes of desire: wanting the best for yourself and your family.
Symptoms of desire: daydreaming, wishing, inaction.
Cure of desire: Setting goals and making our dreams come true.
From the book 'Wouldn't you rather be rich?' by Deirde Lampt.
Regards
Sheryn
Thanks for this Redwing. I'll also look into this... For 5K to grow quickly I think I have to trade but I have to really read and learn more so that I won't get caught again.
I think the share pack is for long-term investing which I'm also interested in... but with only 5K (one-off) I'm not sure yet if it's the right product for me.
If your qualifier for making a decision as to what to do with the 5k is that it must be worthwhile and make you a substantial amount from such a small amount, surely it would be better to consider increasing the amount (e.g not a one off, quarterly/monthly contributions etc' so in that case would become VERY worthwhile.
Sorry, I just don't understand the logic of people who want to make a lot of money off a small amount, but say they won't contribute more, even if the vehicle proves to be particularly successful.
Sorry, I just don't understand the logic of people who want to make a lot of money off a small amount, but say they won't contribute more, even if the vehicle proves to be particularly successful.
FWIW, my current share portfolio is < $10k*. I have about half in speccy stocks that I am trading, and the rest is in "slow and steady" that pay dividends and provide some opportunities to trade in channels. I just make sure I am holding on the ex-div date.
*stands prepared to be shot down with such a flimsy "strategy"*
I also have just opened one of these. Started with $1000 and $-averaging $150 pm in. This allows me to 'diworsify' by at least getting market exposure to the ASX200, with some ups and downs from the $ averaging (and fees). So even if my <$10k gets swallowed up from stock-specific risk, I'm not completely out of the market.
Not sure if this helps, or if I've just managed to add more confusion.
*(How does one make a small fortune in stocks? Start with a large fortune!
)
Perhaps its' cuse they don't yet understand the vehicle enough yet and are still in the learning stages ?
I don't think luck has anything to do with it,nor does the number 5k,that just gives you a starting number in dollar terms,5k in a low level State Bank will carry tax benefits,income or reinvest rollover maybe less than 500 units,or you could buy into some start-up 25 cent ASX new listed public companies that list every day,some go up over 500%,70%go backwards very quickly,just depends on how you understand risk..imho..willair..I have a measley 5K to play with and I want to try shares again. I say again becuase I have tried it before (same amount) and GFC ate it all up. I just tried my luck but I unfortunately it wasn't there at that time.
Anyway, if this is all the money I can put into shares, is it still worthwhile doing it? I don't want to go into speccies anymore since that's where I got caught.
like willair,
I too wonder why $5k would be too little - too little for what ? If I make 100% or 10% or whatever% of $5k, is that not the saem as making 100% or 10% or whatever% ?
Yes trading costs play a part, they do in everything, you can take them into account.....
I would have thought that to be the case, however DWV has stated that a sharepack might not be for him because he wants to do a one-off.
Now if he/she put his foot into the water with the sharepack option, moved into a later part of his/her learning stages (we are always in the learning stages) and expanded his/her holdings so be it. This form of logic doesn't seem to correspond to DWV's comments. I stand by my previous post.
Must be the generation I'm part of but I reckon you learn to ride a bike by getting on it and you learn to swim by jumping in (not the DEEP end of course).
Hobo Jo and I have mentioned a couple of hopeful miners and Dazz has mentioned an oil prospector. See if something takes your fancy and buy something, but don't be trigger happy if the price goes the wrong way a little. ALL shares move without sound reason and speccies more than most.
With only one line in the water you will need to be patient.
Hobo Jo and I have mentioned a couple of hopeful miners and Dazz has mentioned an oil prospector. See if something takes your fancy and buy something, but don't be trigger happy if the price goes the wrong way a little. ALL shares move without sound reason and speccies more than most.
With only one line in the water you will need to be patient.
This has been a very good read. I am sorry I missed all the deleted posts though. We have been day traders for nearly 2 years now and have made huge amounts and also lost huge amounts. I think if you understand that you can lose the lot and you can live with that possibility why not give it a go. I often look into shares that have been mentioned on forums etc, some I have traded and done ok others I have decided are not for me. I started trading straight shares and then moved into CFDs which is where I lost a lot so now, after a 6 month self-imposed break, I am back into straight shares.
I have decided to get back on the horse because if I don't I will have lost that money for nothing (IMO). So I am applying what I learned from the experience and am trading better because of it.
I trade a mix of blue chips and specs. In addition to the other penny hopefuls mentioned maybe have a look at VLA ( a biotech).
Do your own research, get a feel for what you like. I am with sunfish I like to learn by doing. If you lose it again- just think what it might have taught you!!!lol
I have decided to get back on the horse because if I don't I will have lost that money for nothing (IMO). So I am applying what I learned from the experience and am trading better because of it.
I trade a mix of blue chips and specs. In addition to the other penny hopefuls mentioned maybe have a look at VLA ( a biotech).
Do your own research, get a feel for what you like. I am with sunfish I like to learn by doing. If you lose it again- just think what it might have taught you!!!lol
If u want to learn about stocks then there's plenty if advice.
I put 5000 in a managed fund and a fewyrs lAter the 5000 was 8000 . So I think that's better than term dep. When they warned of a crash I took it out si didn't lose a cent . I had access to it if I needed it suddenly so that was an easy method for me.
I put 5000 in a managed fund and a fewyrs lAter the 5000 was 8000 . So I think that's better than term dep. When they warned of a crash I took it out si didn't lose a cent . I had access to it if I needed it suddenly so that was an easy method for me.
